Rescue My Finances

moneymoron1

moohound wrote: »

If you could hang on until you get the pay rise, you might not need the secured loan. once the PDLs are dealt with, the rest is not too bad and could easily be snowballed. A secured loan might look like a quick fix that you could end up regretting.

Evidence of the PDLs will stay on your credit file for 6 years anyway I believe.

They will you're right, but I hope that would be better than the defaults, the way I see it is that they are on my file now anyway, regardless of if I default or not, a default would only add to the damage

moneymoron1

Angry_Bear wrote: »

I'm unclear - what exactly are you thinking of securing the loan on?

You've got enough "spare" to address your debts quite quickly once you get over the payday hurdle but I can't see any way over that hurdle other than contacting the payday companies and coming to a monthly repayment plan.

Going by your SOA, I assume you've worked out how you managed to get into so much debt and have addressed the issue?

Also, I think your wife may well find out about the debt as over £15k of debt (some of which is payday loans) may well have an impact when you come to remortgage even if your payment history was squeaky clean.

Sorry to be quite so blunt about it.

To secure against my home, I have my own house and rent somewhere else, mine is rented out

I know why I got into this mess, I lived too close to the edge of my credit and then had a couple of large expenses, quick fix was PDL's, I knew it wasn't a good idea and stupidly did it anyway, and regret it a lot, I have resolved that now and curbed my spending. The problem I had was that I was servicing the interest and not the debt itself.

moneymoron1

lynz68 wrote: »

My personal opinion is that it is never a good idea to turn unsecured debt into a secured debt. From your SOA you appear to have ample left every month to start dealing with your payday loans but are these figures accurate? I can't tell you how to live your life but keeping it secret from your wife is not a good idea she will find out one way or another. Are you aware of the negative effect of payday loans on your credit rating? The fact you have taken them out at all rings alarm bells for banks as it is a sign of not being able to manage your money even if it had been paid back straight away and may well have an effect when you go to remortgage.

I believe it is accurate, I suppose the thing with my SOA is I don't put money away for car tax or servicing etc, so when those costs come along, in addition to ground rent, estate agents fees and charges on the accounts, I couldn't cope with the expenditure

My idea behind the secured loan is to remove payday loans, and ,y most expensive overdraft, and a credit card, and then overpay on the rest via snowballing. Once under control I can then have some money to one side for additional expenses, living so close to the limit was a stupid idea and one I should have resolved years ago, I know that now, and won't do it again

Angry_Bear

moneymoron1 wrote: »

To secure against my home, I have my own house and rent somewhere else, mine is rented out

Just double checking - this is a house you own solely (not joint with your wife)?

How much information does your wife have about this house, equity and so on. Again, I suspect that everything will come out in the wash when/if you apply for a mortgage and your equity in this house is lower than expected.

moneymoron1

Angry_Bear wrote: »

Just double checking - this is a house you own solely (not joint with your wife)?

How much information does your wife have about this house, equity and so on. Again, I suspect that everything will come out in the wash when/if you apply for a mortgage and your equity in this house is lower than expected.

Yes that's correct, I bought the house before I met my wife, she knows that I have the house, but doesn't think there is much equity in it due to rate of interest, she has little interest in that house

We will look to buy together in a few years when I would like to think the loan will have been paid back. Either that or move into the house when the time is right

lynz68

In all honesty I think you will find it hard to get a secured loan your unsecured debt is not far off £20,000 and the fact that includes payday loans will have a negative effect. People usually access payday loans as the last resort no finance available elsewhere. Also there is nothing to stop you running up the debt on your credit cards or eating into your overdraft again once cleared unless you cancel both as soon as you have paid them off. I think you would be much better off sitting down and working out a plan to pay the payday loans off without borrowing more money as I believe that is the only way people learn by budgeting by borrowing more the temptation is there to carry on as you are with the likelihood of ending up in an even bigger mess.

moneymoron1

Thanks lynz,

I agree that I may not even be able to get a secured loan, I would certainly pay off and close all the things I have mentioned above, I've had this hanging over me for nearly 2 years and I can't keep getting myself down about this, I feel the secured loan would give me the potential to resolve my situation. Given my earnings, I could afford repayments.

In the mean time I am working out a strategy to pay the payday loans off gradually but the ones I have to roll over remove all my ability to pay the rest of the bills

I will sell my car which will also help me.

The other thing is there is someone else on the mortgage of my home. My mum is on it, she earns a salary of around 70k and I think I could get her to agree to the secured loan which would help me get it I hope?

I would have to come clean with the debts but I think I could do that

moohound

Would the sale of the car cover most of the PDLs?

lynz68

I understand you see it as an option. I obviously don't know your personal situation but you earn a decent salary which has jumped from £22k to £35 and due to jump again to £45 some on here can only dream of earning that. So when your salary jumped to £35k did you have these debts then, have you paid off other debts or generated more? Your imminent pay rise should help significantly as long as you don't take on anymore debt. If the mortgage is in both you and your mothers name both of you will need to apply but you are putting her in an awful position because she will have to know about all the debts do you expect her to keep that a secret from your wife? How would your wife feel if she found out at some point anyway and that your mother knew? At the minute your house is rented out but what happens if your tenant moves out who pays the mortgage then I am assuming the rent you receive covers the mortgage. I think you can do this without the securing the debt it may take a bit longer than you want but your pay rise should help as long as you use it all for debt repayment and don't start spending it.

moneymoron1

moohound wrote: »

Would the sale of the car cover most of the PDLs?

Yes it should do